2026 Executive Outlook | Celyeste Power, Insurance Bureau Canada

In 2026, we’ll turn years of advocacy into action. We’ll be working collaboratively with governments to implement key auto reforms, address earthquake risk, and reduce regulatory burdens so Canadians are better protected.

Auto reforms in Alberta and Ontario

Next year, the industry will face the unique challenge of implementing not one, but two sets of substantive auto insurance reforms – one in Alberta and another in Ontario.

In Alberta, after years of rate caps and market instability, the industry will work to implement the government’s “Care-First” reforms on Jan. 1, 2027.

The new model will deliver faster, better care for collision victims and offer the most generous auto insurance benefits in Canada. These reforms mark a significant win for drivers across the province, and we’re committed to working closely with government to ensure they deliver the results Albertans deserve.

In addition to covering medical needs, lump-sum payments for permanent impairments will be provided differently than they are today. All funds will go directly to collision victims rather than being siphoned off to lawyers in costly court battles.

Over the next year, the industry will focus on system upgrades, staff training, catastrophic claim management, and consumer education. There is immense pressure to get this right. Throughout this process, IBC’s focus will be to ensure the government and stakeholders understand the merits of care-based insurance and the importance of a competitive market.

Meanwhile, in Ontario, starting on July 1, 2026, several auto insurance benefits — such as income replacement, non-earner, and caregiver benefits — will become optional.

IBC and its members are focused on implementing these changes and educating consumers about Ontario’s proposed auto reforms.

To this end, IBC and the Insurance Brokers Association of Ontario are working together to launch a targeted consumer education campaign in the spring to help consumers better understand the options available to them.

Advancing a solution to earthquake risk

The federal government has clearly signalled a willingness to advance a solution to earthquake risk, which is neither a new priority nor a new threat. In the 2025 Budget, a single but significant sentence commits Ottawa to begin consultations that aim to “ensure the stability of Canada’s insurance sector” if and when an extreme earthquake hits.

The government recently announced an earthquake early warning system in Montreal and Ottawa. This both reinforces the possibility of a significant earthquake and underscores our country’s need to be ready.

We view this as a pivotal opportunity to work with the federal government on a solution to safeguard the industry, the economy and, most importantly, protect Canadians.

Reducing the regulatory burden

Regulatory compliance costs across Canada’s P&C insurance sector has surged 81% since 2022, according to a new Regulatory Compliance Cost Survey by IBC. We’re thankful the tide appears to be turning toward reducing the industry’s regulatory burden.

Budget 2025 included a commitment to ensure federal consultations with the financial sector are more predictable and transparent. IBC is continuing its advocacy with government officials and regulators, and making recommendations supporting the federal government’s commitment to economic growth.